A strata report is an inspection of the owners corporation's records, done before you buy an apartment, townhouse or strata duplex in NSW. It shows levies, special levies, building defects, insurance, disputes and by-laws, but it only reports what is in the records, so it does not mean the building has no problems.
Buying into a strata scheme means buying a share of the whole building, not just your unit. If the roof leaks, the lift fails or the facade needs repairing, every owner contributes. A strata report is how you find out about those costs before you are committed.
One of the most common mistakes we see is buyers assuming that once they have a strata report, there are no risks left. This guide explains what the report covers, where it falls short and what to look for.
What is a strata report?
Under the Strata Schemes Management Act 2015 (NSW), a prospective buyer can apply to inspect the strata records of the owners corporation. A strata inspector, or sometimes your conveyancer, goes through those records and summarises them in a report.
It is sometimes called a strata search or strata inspection report. It is different from a building and pest inspection, which looks at the physical condition of your lot.
What a strata report covers
| Area | What the report looks at | Why it matters |
|---|---|---|
| Levies | Quarterly levies for the administrative fund and capital works fund | Your ongoing cost of owning the unit |
| Special levies | Any one-off levies raised or proposed | A special levy can run to thousands of dollars per lot |
| Capital works fund | The fund balance and the 10-year capital works plan | A low balance with big works ahead often means a special levy is coming |
| Minutes | Recent AGM and strata committee minutes | Where defects, repairs and disputes first appear |
| Building defects | Defect reports, building bond inspections, claims against the builder | Defects can take years and large levies to fix |
| Insurance | Building and public liability cover, claims history | Underinsurance or repeated claims are a warning sign |
| By-laws | Rules on pets, renovations, parking, short-term letting | They may stop you using the unit the way you planned |
| Disputes | Matters before NCAT or the courts, disputes between owners | Legal costs are often shared by all owners |
| Fire safety and cladding | Fire safety statements, cladding orders | Remediation can be very expensive |
What a strata report can miss
A strata report is only as good as the records it reads. It can miss:
- Problems not yet minuted. A leak discussed informally between owners will not appear until it reaches a meeting.
- Works not yet quoted. If the committee knows the facade needs repair but has no quote, the cost may not show up anywhere.
- Missing records. Some strata managers keep incomplete files, and the report can only note what is missing.
- The condition of your unit. The report covers common property records, not the inside of your lot. You still need a building and pest inspection.
- Unapproved renovations. If a previous owner moved a wall or replaced flooring without approval, the records may not show it.
- Anything after the inspection date. A meeting the week after your report can raise a new special levy.
That is why we read the report alongside the contract and the minutes, and ask follow-up questions where something is unclear.
Red flags to look for
- A special levy raised in the last two years, or proposed at the next meeting
- A capital works fund that is small compared with the works in the 10-year plan
- Repeated mentions of water leaks, concrete cancer, waterproofing or cracking
- Defect claims against the builder or developer
- Legal proceedings or NCAT applications
- Large levy arrears from other owners
- Insurance claims made year after year for the same problem
- By-laws that ban pets, short-term letting or the renovations you plan
- Cladding or fire safety orders
One red flag does not mean you should walk away. It means you should understand the cost before you sign.
Special levies: who pays?
Under NSW law, the person who owns the lot when a levy falls due is generally liable to pay it. That means a special levy raised before you buy, but payable after settlement, can land on you.
The standard NSW contract for sale has rules about levies, and the timing of when a levy is raised and when it falls due both matter. We check the levy notices and the contract's special conditions so you know exactly what you are taking on.
New buildings and the strata building bond
For new residential strata buildings of four storeys or more, NSW has a strata building bond and inspections scheme. The developer lodges a bond, and independent inspections are carried out to identify defects in the first years after completion.
If you are buying in a newer tower, the strata records may show whether defects have been reported under the scheme and how they are being fixed. This is common in the Bankstown CBD and Parramatta.
Older buildings: what we see locally
| Area | Common strata issue |
|---|---|
| Bankstown CBD | New towers with defect inspections under way, and older walk-up blocks with ageing roofs and plumbing |
| Parramatta | Defect claims in towers built in the last 10 to 15 years |
| Hurstville and Kogarah | Large schemes with lifts and car park works planned |
| Northern Beaches | 1960s and 1970s blocks needing concrete and waterproofing repairs because of salt air |
When to get a strata report
Private treaty: before you exchange, or within your 5 business day cooling off period if you exchange with a cooling off period. If the report shows something serious, you can pull out during cooling off by paying 0.25% of the price. See our cooling off period guide.
Auction: before auction day. There is no cooling off period when you buy at auction in NSW, so the report must be done first.
Off the plan: the building may not exist yet, so there may be no records. Instead, check the disclosure statement, the draft by-laws and the proposed levies.
Who orders the strata report?
The buyer usually orders it from a strata inspection company, and sometimes the conveyancer arranges it. Some sellers provide a report up front. If the report was ordered by the seller, check how old it is and whether anything has happened since.
The cost of a strata report depends on the provider and the size of the scheme. Our own professional fees are set out on our conveyancing fees page.
How we use the strata report
When you send us an apartment contract, we:
- Read the contract and special conditions
- Review the strata report and flag anything unusual
- Check the levy position and any special levies
- Explain the by-laws that affect how you plan to use the unit
- Tell you in plain English what we would want answered before you commit
Common questions
FAQs
Is a strata report required in NSW?
No, it is not legally required, but it is strongly recommended. It is the main way to find out about levies, defects and disputes before you are committed.
What is the difference between a strata report and a building and pest inspection?
A strata report reviews the owners corporation's records for the whole building. A building and pest inspection looks at the physical condition of your unit. You usually need both.
How long does a strata report take?
Often a few business days, depending on the strata manager and the inspector. Order it as soon as you are serious about a property.
Can I rely on a strata report the seller gives me?
You can read it, but check its date and who it was prepared for. A report from three months ago may miss a recent meeting.
Does a strata report cover a two-lot duplex?
If the duplex is strata titled, yes, though a small scheme often has very few records. Check whether there is building insurance and how shared costs are split. See our guide to duplex title types.
What if the strata report shows a big special levy?
You can negotiate the price, ask the seller to pay it, or walk away, depending on where you are in the process. Talk to us before you exchange.
Sources: Strata Schemes Management Act 2015 (NSW) · NSW Government: strata building defects · NSW Fair Trading: buying into a strata scheme
City Peak Conveyancing acts on NSW property only. This page is general information, not advice about your circumstances.